Environmental Management Kenko Kankyo (Health) (Environment) Recycle Amenity Guideline on Activity Under the Slogan of In carrying out environmental conservation activities We, the Suminoe Textile Group, are continuing to work on environmental conservation activities such as interior environment improvement and utilization of recyclable materials as well as decreasing our impact on the environment with our fundamental philosophy of“K- Kenko (Health)”,“K- Kankyo (Environment)”,“R- Recycle”and “A- Amenity: Comfort”. 1 We will positively promote energy-saving, resource-saving, recycling with a consideration not to contaminate environment in all of our business activities. 2 We will try to preserve environment through products’life cycle from production, sales to disposal by developing environment-friendly technology and products. ① Development of technology for energy-saving and resource-saving ② Development of recycling technology and recycling system Fundamental Environmental Philosophy ③ Development of products and technology to replace materials which would put less load on environment and have more safety. Recently deterioration of global environment has rapidly progressing. It is a mission in common among human beings who live on earth to make efforts to preserve and improve global environment and hand the beautiful earth to our descendants. Suminoe Textile Co., Ltd. well recognized this fact, will make a comfortable and rich society with a cooperation of all the employees positively tackling with environmental preservation activities. Suminoe Textile Group“SUMINOE Environmental Declaration” ④ Development of product which could improve environment and contribute to health and comfort. 3 We will try to live together with community through close communication and all employees will start action from whatever one can do. 4 We will try to maintain internal system to promote environmental protection and enhance environmental consciousness of all employees. In 2009, the Suminoe Textile Group reviewed its Environmental Declaration, originally released in 1998, and created a revised declaration comprising seven specific declarations on which we are basing our environmental actions. Declaration 1 We shall contribute to the improvement of interior environments and realize comfortable spaces. Declaration 4 We shall use safe/secure materials and always consider health and the environment. Our TRIPLE FRESH deodorant treatment is applied to carpets, curtains, wallpaper and automobile interior fabrics to deodorize unpleasant smells, such as cigarettes, pets, household odors, and Formaldehyde, which is believed to be behind sick building syndrome, by absorbing and dissolving the elements causing bad smells. Other efforts being made by us to create a comfortable and care-free living space include an anti-allergen treatment called ALLER-BLOCK, aimed at suppressing allergen activity, and a skin-care beauty treatment. We will provide products that have passed safety rules and regulations, while refraining from supplying products that contain volatile organic compounds (VOC), believed to cause sick building syndrome, or heavy metals, which require special attention in disposal. Instead, we will actively use natural fabric materials such as wool, hemp, and cotton. In addition, we will make consumer-friendly products, such as flooring mats using Olefin film, which is known to emit a minimal amount of toxic gas during burning. We shall respond to the recycling society and positively adopt recycled materials. We shall work on resource and energy conservation from manufacturing to the finished product. Environmental Protection Promotion System The Environmental Promotion Subcommittee was set up within the CSR Promotion Committee. Measures drawn up and finalized by the subcommittee are implemented in all divisions and departments throughout the Group. CSR Promotion Committee Administration Headquarters 2 We are actively using recycled materials as part of our efforts to promote environmental conservation and the efficient use of natural resources. Specific products launched by us for that purpose include SUMITRON polyester yarn, which is made from recycled PET bottles, a recycling system for carpet tiles in which used tiles are recollected and recycled into new products, the SUMICUBE seat cushion material for railway cars, and the SE Light N simplified raised floor material, made from PP resin, recycled from beer cases. Declaration 3 We shall provide products that enable the reduction of CO2 and decrease our impact on the environment. To play a part in curbing global warming and building a low-carbon society, we will develop and provide low-carbon products based on the Life Cycle Assessment (LCA) method. LCA is intended to comprehensively and quantitatively evaluate the impact of manufacturing activities on the environment while taking into consideration the entire cycle of products̶ materials, manufacturing, transportation, use, and disposal. Declaration 5 We will promote the effective use of resources by reducing losses of primary materials, auxiliary materials, water and energy occurring in production. We will also strive to increase the efficiency of transportation, resources utilization, and waste disposal by constantly updating energy-saving facilities, improving product quality, reducing the weight of products, and simplifying packaging. By taking these measures, we will ensure the saving of resources and energy conservation. Declaration 6 We shall promote the appropriate management of environmentally hazardous substances based on the latest information. Tougher controls have been in place both in Japan and abroad on the use in products of specified chemical substances. In response to such moves, we will assess all our products and check whether such substances have been used, while establishing a system to adequately control the materials used in our products, based on the Supply Chain Management (SCM) concept. Furthermore, we will keep ourselves abreast of the latest information on product safety. Declaration 7 We shall present and provide products that are conscious of the environment. Our environmental consideration in manufacturing will be given not only to external product appearance and functions but also to other factors, such as minimizing resources and energy consumption in the process of production, making product recycling easier, manufacturing longer-life products and optimizing waste disposal. We will propose and deliver products based on such an“eco-design concept.” 39 Suminoe Textile Group CSR Report 2016 President CSR & Internal Control Council Automotive Textile Business Headquarters Working Group Management Meeting Declaration Suminoe Textile Environmental Promotion Subcommittee Traffic Facilities Business Headquarters Environmental Management WG Functional Materials Business Headquarters Office Management WG Interior Business Headquarters Technical and Production Engineering Headquarters Introduction of environmental management system The Nara Factory obtained ISO14001 certification in fiscal 2000, making it the first among the Group to be awarded certification on environmental management. To date, five factories have obtained ISO14001: 2004 certification, and one factory Eco Action 21 certification. Eco Action 21 : 2009 ISO14001 : 2004 Nara Factory, Shiga Factory Screening and registration agency Teijin Tecloth Ltd. Owari Seisen Co.: Head Office Factory, Ishikawa Factory Tango Textile Co. Japanese Standards Association Japan Quality Assurance Organization Japan Quality Assurance Organization Institute for Promoting Sustainable Societies Registration number JSAE235 JQA−EM1519 JQA−EM3114 0009522 Registration date May 2000 April 2001 March 2003 July 2013 Registration renewal 5th renewal completed (May 2015) 5th renewal completed (April 2016) 4th renewal completed (September 2014) 1st renewal completed (July 2015) Suminoe Textile Group CSR Report 2016 40 Environmental Management Fourth Medium-Term Activity Goals―Eco Challenge 2018― Environmental commitment Business activities undertaken by the Suminoe Textile Group are deeply connected to the environment. This holds true to our daily operations, as well as to the entire lifecycle of our products―from product development and design, material procurement, production, sales, distribution, consumption, disposal and recycling. The Suminoe Textile Group is working on assessing and reducing the impact on the environment from our business activities as a whole and our products throughout their lifecycle. We are committed to manufacturing environmentally friendly products. One example is active use of recycled materials, including polyvinyl chloride powder recycled from used carpet tiles, and raw cotton and polyester pellets recycled from PET bottles. In conducting CSR activities, we also focus on environmental conservation, and Group-wide efforts are underway to achieve the goals set under Eco Challenge 2018. Eco Challenge 2018 (Fourth Medium-Term Activity Goals) Eco Challenge 2018(Fiscal 2015 Results) The Suminoe Textile Group continues working to reduce its environmental impact, and these efforts over many years have produced steady results. In fiscal 2015, which marked the inaugural year of Eco Challenge 2018, we achieved our goals for almost all items by fiscal 2014 standards, so that we have been able to remain on a solid upturn since 2011. Prevention of Global warming Reduction of Energy Consumption We assess the results of our energy-saving activities, based on the calorie equivalent of our energy consumption*. In fiscal 2015, our energy consumption was reduced in terms of both the total calorific value and the basic unit. Energy consumption at overseas factories increased, accounting for 38.6 percent of the total energy consumed by the Group. *Unit of calorie equivalent of energy consumption: GJ (gigajoule) We have formulated Eco Challenge 2018 (Fourth Mid-Term Activity Goals), as a set of goals on environmental protection. Its duration is three years from fiscal 2015 to 2017, during which we promote environmental activities, in synchronization with our medium-term management plan,“Advance Ahead 2018.” 1,400 ■ Affiliates covered by Eco Challenge 2018 1,200 Suminoe Textile 1,000 800 Interior Business Headquarters Automotive Textile & Traffic Facilities Business Headquarters Suminoe Teijin Techno Co. ★Teijin Tecloth Ltd. ★Owari Seisen Co. Head Office Factory ★Owari Seisen Co. Ishikawa Factory ☆Suminoe Textile of America Corporation ☆SPM Automotive Textile Co. ☆Suzhou Suminoe Koide Automotive Accessories Co. ☆T.C.H. Suminoe Co. Functional Materials Business Headquarters SUMINOE Co. RUNON Co. Suminoe Logistics Co. ★Kyoto Traditional Art and Craft Factory ★Tango Textile Co. Technical and Production Engineering Headquarters ☆Suzhou Suminoe Textiles Co. ★Suminoe Techno Co. Nara Factory ★Suminoe Techno Co. Shiga Factory Kansai Laboratory Co. Technical Center ★Domestic factories: Subject to meeting numerical targets on the use of recycled materials, the amount of industrial waste generated (the recycling rate and the rate of industrial waste disposed of at final disposal sites) and the amount of PRTR-designated substances handled ☆Overseas factories: Subject to meeting numerical targets only regarding energy consumption and water consumption 600 400 13.3 14.2 272 Domestic 200 0 795 375 420 415 420 717 720 694 670 2011 2012 2013 2014 2015 Numerical targets for FY2015 FY2015 results Evaluation Prevention of global warming Reduction of energy consumption 3% reduction(Basic unit) 2014 -1% −8.1% ○ Reduction of fuel consumed by company-owned vehicles 3% reduction(Basic unit) 2014 -1% −12.1% ○ 2 Resources conservation Reduction of water consumption 3% reduction(Basic unit) 2014 -1% −2.0% Increased utilization rate of recycled material ○ 3% improvement 2014 1% 1.9% ○ Reduction of industrial waste 3% reduction(Basic unit) 2014 -1% −3.4% ○ 3 3Rs regarding waste material 1 4 5 6 7 8 ○ 6 9.5 802 778 7.5 665 7.0 642 6.2 603 0 2011 2012 2013 2014 2015 8 6 4 Comparison from base year Down 32.7% ○ 10% or less − 10% or less 11.4% △ 3% reduction(Basic unit) 2014 -1% −9.4% ○ 3% reduction(Basic unit) 2014 -1% −2.0% ○ ■ Change in water consumption (including overseas use) Promotion of LCA assessment for products 18 items under LCA assessment − 95% or more 91.3% △ 2014 -1% −6.2% ○ 2,500 − 6 items 50 items ○ Promotion of development of environment-friendly technologies 3 cases − 1 case 1 case ○ 9 cases − 3 cases 3 cases ○ − − − 9 Compilation of date on environmental impact of overseas factories and reduction of such impact − Compilation of data for all overseas factories − 2014 Plus 2 companies 0 companies × Suminoe Textile Group CSR Report 2016 67.1 16.1 21.9 24.4 23.7 Domestic 43.3 43.5 45.0 43.4 0.640 62.4 23.9 38.5 2011 2012 2013 2014 2015 0.7 0.6 0.4 0.2 0.0 [Reference data] Rate of company-owned eco vehicles As part of our energy-saving activities, we actively introduce hybrid cars and low-emission vehicles. In fiscal 2015, the number of these eco vehicles increased to account for 79.5% of all company-owned cars. ■ Ratio of eco vehicles in all company-owned vehicles (FY2015) Vehicles not qualified for tax breaks (61 vehicles) 20.5% Eco vehicles qualified for tax breaks (236 vehicles) 79.5% We are promoting the cyclical use of cooling water. Although the total water consumption increased, due to the brisk dyeing process business in Japan and an increase in water use in overseas factories, we reduced our water consumption in terms of the basic unit. Water (1,000㎥) Promotion of biodiversity preservation in business activities 0.736 69.4 Overseas ○ Reduction of water consumption 65.5% 8 0.786 Total: 297 vehicles Resources conservation 65% or more Promotion of development of environment-friendly products 20 65.3 0 − 3% reduction(Total amount) 40 0.798 Basic unit (t/¥1 million) 0 65% or more 95% or more 59.5 60 0 2 200 0.790 80 2 10 10.6 ■ Change in CO2 emissions (including overseas emissions) 4 Increase of recycled material utilization rate Reduction of waste disposal rate via land reclamation Reduction of air pollution Prevention of (reduction of NOx emissions) environmental Reduction of emissions reported pollution under PRTR system Improvement of Promotion of green stationery purchase rate green activities Reduction of paper consumed by photocopying ■ Basic unit : Consolidated sales used as a denominator for calculation ■ Conversion coefficient : The amount of CO2 emissions is calculated based on a conversion coefficient set in accordance with the law to promote measures against global warming. The amount of NOx emissions is calculated based on a conversion coefficient used in the 2002 edition of Eco Action 21. The amount of CO2 emissions at overseas factories is calculated based on a conversion coefficient set for each country in the 2007 GHG protocol. 41 10 Basic unit (L/¥1million) 1,000 400 Base FY Comparison from base year Down 8.1% ■ Reduction of fuel consumed by company-owned vehicles Consumption of gasoline, gas oil (1,000L) ■ Activity Goals and Fiscal 2015 Results Final numerical targets 12 We are striving to reduce fuel consumption by company-owned cars by promoting eco driving. We have also adopted a policy of switching to fuel-efficient vehicles. 600 Work areas 11.2 Reduction of Fuel Consumed by Company-Owned Vehicles ■ Period: Fiscal 2015‒2017(three-year plan; data collection lasting between June 2015 and May 2018) No 12.2 Basic unit (GL/¥1million) 1,067 1,092 1,140 1,109 1,090 Overseas 800 ○: Attained △:Not attained at some factories ×: Not attained 12.9 We assess the impact of our corporate activities on global warming, based on CO2 emissions. Both the total amount of CO2 emissions and the CO2 emissions per basic unit decreased compared to the previous year. Emissions (1,000 t) ■ Change in calorie equivalent of energy consumption (including overseas consumption) Total caloric value (1,000 GJ) [Reference data] Reduction of CO2 Emissions 2,000 1,500 1,000 0 Basic unit (㎥/¥1 million) 25.3 21.1 Overseas Domestic 1,905 130 1,775 19.3 19.1* 1,730 1,702 1,741 18.7 20 1,825 15 155 144 169 227 1,575 1,558 1,572 1,598 2011 2012 2013 2014 2015 10 Comparison from base year Down 2.0% ○ Increased Utilization Rate of Recycled Material We are actively using recycled materials for product manufacturing to make savings in resources. For example, the“closed-loop recycling”ECOS® series of carpet tiles are produced using recycled yarns スミトロン®(SUMITRON) and ECONYL®(エコニール) as well as polyvinyl chloride powder recycled from used carpet tiles. Another example is the use of recycled polyester cotton in needle punched carpets. ■ Rate of use of recycled materials (%) (%) 40 30 5 20 0 10 *The basic unit was revised in accordance with the corrections to the financial results for past fiscal years. 0 33.6 34.3 35.4 36.0 37.9 Comparison from base year Up 1.9% ○ 2011 2012 2013 2014 2015 Suminoe Textile Group CSR Report 2016 42 Environmental Management Eco Challenge 2018(Fiscal 2015 Results) Promotion of LCA Assessment for Products 3Rs regarding Waste Material Reducing industrial waste, increasing the recycling rate, and reducing the waste disposal rate via land reclamation We are promoting the effective use of resources and making efforts to reduce industrial waste by minimizing materials that are never used as a part of our products and by not manufacturing products that do not pass quality standards. We have also developed--either on our own or jointly with other companies--a technology and a system to recycle waste material so that the amount of such material sent to reclaimed land sites for final disposal will be reduced. Thanks to such recycling efforts, so-called "zero emissions"* have been attained at Tango Textile Co., Ltd. and the Ishikawa Factory of Owari Seisen Co., Ltd. *Zero emissions : A concept proposed by the United Nations University in 1994 with a view to reducing waste from the whole of society to zero, by using the waste from one industry as a raw material in another. "Zero emissions" are defined by our Company as the rate of waste material sent to final disposal sites being below 2 percent of the total waste material generated. The rate of waste material buried at final disposal sites = the amount of waste material dumped on reclaimed land for final disposal ÷ the amount of total industrial waste generated ■ Change in industrial waste generated Amount of industrialwaste generated (t) Basic unit (kg/¥1 million) 55.6 47.8 5,000 50 39.1 4,000 36.5* 35.2 40 30 3,000 4,187 3,916 3,453 3,324 3,434 2,000 20 10 1,000 0 2011 2012 2013 2014 2015 ■ Changes of recycled material utilization rate and rate of waste material buried at final disposal sites (%) 80 60 Comparison from base year Down 3.4% ○ 40 70.0 43.3 40.3 20 0 0 *The basic unit was revised in accordance with the corrections to the financial results for past fiscal years. 48.2 30.7 2012 ○ 65.5 10% or less Target not fully attained Rate of waste material buried at final disposal sites 10.5 2011 65.1 Recycled material utilization rate 65% or more Target attained 12.8 2013 2014 11.4 △ 2015 Prevention of Environmental Pollution Reduction of air pollution (NOx emissions) Substances that may become air pollutants include NOx, SOx, and other fine particles. NOx is used here as an example to explain the situation of air pollution. The amount of NOx emissions is calculated based on the emission coefficient used in the 2002 edition of Eco Action 21 for facilities where no emission-cutting measures were taken. ■ Reduction of NOx emissions Basic unit (kg/¥1 million) Emissions (kg) 50,000 40,000 30,000 45,643 0.8 40,731 0.606 0.497 20,000 39,771 35,921 34,815 0.451 0.394 0.357 10,000 0 2011 2012 2013 2014 2015 Reduction in the Amount of PRTR-Designated Substances Handled Atmospheric emissions of deca-brominated diphenyl ether (DBDE), used as a fire retardant, and perfluorooctanoic acid (PFOA), used as a fluorosurfactant, are being replaced by safer alternatives, as their use is likely to be banned in the future. Amount of substances 23.3 handled (t) Basic unit (kg/¥1million) 18.2 1,500 0.4 Comparison from 0.2 base year Down 9.4% ○ 0 16.8 15.2 20 14.9 1,000 500 0 1,752 1,489 1,479 1,386 1,453 2011 2012 2013 2014 2015 15 10 Comparison from base year Down 2.0% ○ Improvement of Green Stationery Procurement Rate Consumption (kg) 100 90 93.5 92.9 92.4 87.5 80 70 ∼ ∼ 0 43 91.4 95% or more targeted Target not fully attained △ 25,000 20,000 15,000 2012 2013 2014 Suminoe Textile Group CSR Report 2016 2015 Promotion of Development of Environment-Friendly Technologies (One Goal Set) 1 Technology for compounding and processing a deodorant for sweat, body odor in old people and fecal smell We developed a deodorant technology for removing the smell of sweat, body odor in old people and the smell of excreta, by focusing on anti- sulfur gas deodorizing performance, as the fourth generation of トリプルフレッシュ® (TRIPLE FRESH), which is a deodorant treatment technology that uses no light or electricity but is friendly to the environment. The new technology is expected to find applications in actual settings in nursing and medical care. We have decided to employ this deodorant technology in the curtain series for welfare facilities. In medicine, this deodorant technology has been used to produce a deodorant bandage. Another commercialized product using this technology is スカッと消臭® (Sukatto Deodorant) sheet released under the Tispa® Series, our proprietary deodorant brand. 23,441 22,868 0.311 0.279 0.310 21,315 19,993 0.234 0.205 2011 2012 2013 2014 2015 1 Development of GRACE CORD®, an eco-friendly narrow woven fabric for decoration, used for automotive seats 2 Development of PH Films, sign/warning films used on the floors of train cars, which feature a thin lamination and high durability 3 Development of 空気を洗う壁紙®珪藻土プラス (a deodorant wallpaper diatomite plus), a product using diatomaceous earth that has a temperature adjustment function as its base material, to which the deodorant function of トリプルフレッシュ®プラス (TRIPLE FRESH Plus) is added. One product Target attained 空気を洗う壁紙®珪藻土プラス (a deodorant wallpaper diatomite plus) ○ Three products Target attained ○ Environmental Activities for Preserving Biodiversity in Business Operations 1 Reduction of impact on biodiversity from business activities 0.3 0.2 0.1 5,000 スカッと消臭 ® (Sukatto Deodorant) Promotion of the Development of Environment-Friendly Products (3 Goals Set) Activity Policy Basic unit (kg/¥1million) 27,328 10,000 0 2011 Promotion of Development of Environment-Friendly Technologies / Promotion of Development of Environment-Friendly Products 0 We are making efforts to reduce the use of photocopy paper by promoting the use of the in-house intranet and printing on the reverse side of used paper. In fiscal 2015, both the total amount and the basic unit of photocopy paper consumption decreased as in the previous year, showing a trend toward a steady reduction. ■ Change of rate of buying eco-friendly office equipment (%) ECOS® SCENERY SOUND series Factories run by the Suminoe Textile Group have been undertaking various unique activities since fiscal 2013 in order to protect biodiversity based on the environmental protection guidelines the Group adopted in fiscal 2011. Reduction of Paper Consumed by Photocopying ■ Change of consumption of photocopy paper (%) *LCA : Stands for lifecycle assessment. LCA is a method to quantitatively evaluate the resources used to produce a product at each stage of its lifecycle−from raw material procurement, manufacturing, distribution and use to disposal−as well as its load on the environment, and also the potential environmental impact that the product and resources may have on the Earth and ecosystems. ○ 5 Promotion of Green Activities We are actively promoting purchases of environmentally friendly office equipment and supplies to reduce their impact on the environment across the entire life cycle of such products, from collection of materials to disposal. However, since the scope of green product purchasing was expanded to sales companies and logistics departments, the percentage of targets achieved has dropped. To reverse this trend, we will step up efforts to achieve the target rate, 95% or more. 50 items Target attained We have established a system to conduct in-house LCA assessments for products, with a total of 18 items set as assessment targets for the three years from fiscal 2015 to 2017. We carried out LCA assessments for 50 items under five marks of the“closed-loop recycling”ECOS® series of carpet tiles in fiscal 2015, exceeding the target of six items for that year. ■ Reduction in amount of PRTR-designated substances handled 2,000 0.6 Promotion of LCA* Assessment for Products (6 Items Targeted) 0 Comparison from base year Down 6.2% ○ ・Monitoring the situation on biodiversity around factories and their vicinity ・Using locally-grown native species, not nonnative species, for tree planting ・Periodically cleaning areas near factories and improving environmental conditions there by weeding out grass ・Checking sustainability when biological resources are used as product material ・Promoting development of products with recycled material and building a recycling system to manufacture such products ・Incorporating activities for biodiversity preservation into an environmental management system ・Promoting new measures that are possible at each factory for preservation of biodiversity 2 Activities to seek suppliers’cooperation in reducing impact on biodiversity across the entire supply chain ・Seeking cooperation from suppliers in observing green purchase guidelines, to promote our efforts to preserve biodiversity Activity Results [Nara Factory of Suminoe Textile Co., Ltd.] As a member of the Ando Ouyu-Kai (Ando Association for Growing Cherry Trees along the Okazaki River), the factory has taken part in activities to develop a promenade in the area along the Okazaki River (Ando Town, Nara Prefecture) flowing south of the factory, by improving a cherry tree-lined road. In the area, events are held to enjoy viewing cherry trees protected and grown through these activities, offering a place of relaxation for local residents. [Shiga Factory of Suminoe Techno Co., Ltd.] The factory has been working on propagating the“Sasayuri”lily, the flower of the local city of Koka. The population of the Sasayuri lily, which symbolizes the harmonious coexistence of people and nature, has been on the decline every year. However, activities are underway to bring many flowers into bloom within the premise of the factory. In June 2016 again, factory’ s employees were pleased to see beautiful Sasayuri lilies from the bulbs they had grown for several years from locally-procured seeds. [Factory at the head office of Owari Seisen Co., Ltd.] The factory has been supporting the project which is working to revive fireflies on the Kiso River and in other wetland areas, as a member of the Ichinomiya Heisei Firefly Association. 3 Social contribution activities ・ Supporting groups engaging in forestry preservation activities ・ Supporting green charity activities Suminoe Textile Group CSR Report 2016 44
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